Egypt’s Stocks Tumble on Morsi Decree

Your News Companion by Ben Mathis-Lilley
Nov. 25 2012 11:48 AM

Egypt’s Stocks Tumble as Protests Over Morsi Decree Continue

156923534
An Egyptian protester holds a tear gas canister during clashes with Egytptian riot police in Tahrir Square on Sunday

Photo by AFP/Getty Images

Egypt’s benchmark stock index plunged 9.6 percent on Sunday, the biggest drop since January 2011, illustrating how the unrest that has taken hold of the country is spreading into the economy and decimating hope that stability could be quickly restored, reports Bloomberg. Protests against President Mohammed Morsi’s decree that essentially gave himself almost absolute power without oversight from the judiciary continued on Sunday. Riot police fired tear gas at protesters in the iconic Tahrir Square in Cairo, a reminder of the revolution that toppled Hosni Mubarak in February 2011, notes Reuters.

Several dozen protesters are now refusing to leave Tahrir until Morsi rescinds the decree, reports the Associated Press. The clashes of recent days are seen as a preview of what the country can expect Tuesday, when both sides have called for big demonstrations. Anger continues to grow, particularly because the brutality shown by police officers against protesters appears to rival what was seen in the Mubarak days. “Appalling police brutality against demonstrators continues unabated,” Nobel peace laureate Mohamed ElBaradei wrote on Twitter. “Mubarak's repressive regime alive and well.”

Advertisement

Analysts caution that if Morsi doesn’t manage to quickly defuse the situation he could have a bigger governability problem in his hands. He may have unwittingly given a gift to the opposition, helping secularists and youth groups unite under one banner, something they haven’t been able to do since Mubarak’s ouster, notes Bloomberg.

Sunday’s stock market plunge illustrates how Egypt’s deep political divisions will undoubtedly hurt its still-ailing economy. The plunge will have "a lot of impact on other economic indicators," such as tourism and foreign investment, a Cairo financial analyst tells Al Jazeera. Trading in the stock market was suspended for 30 minutes as shares plunged, but the drops continued as soon as trading resumed.

Daniel Politi has been contributing to Slate since 2004 and wrote the "Today's Papers" column from 2006 to 2009. You can follow him on Twitter @dpoliti.

TODAY IN SLATE

History

Slate Plus Early Read: The Self-Made Man

The story of America’s most pliable, pernicious, irrepressible myth.

Rehtaeh Parsons Was the Most Famous Victim in Canada. Now, Journalists Can’t Even Say Her Name.

Mitt Romney May Be Weighing a 2016 Run. That Would Be a Big Mistake.

Amazing Photos From Hong Kong’s Umbrella Revolution

Transparent Is the Fall’s Only Great New Show

The XX Factor

Rehtaeh Parsons Was the Most Famous Victim in Canada

Now, journalists can't even say her name.

Doublex

Lena Dunham, the Book

More shtick than honesty in Not That Kind of Girl.

What a Juicy New Book About Diane Sawyer and Katie Couric Fails to Tell Us About the TV News Business

Does Your Child Have Sluggish Cognitive Tempo? Or Is That Just a Disorder Made Up to Scare You?

  News & Politics
History
Sept. 29 2014 11:45 PM The Self-Made Man The story of America’s most pliable, pernicious, irrepressible myth.
  Business
Moneybox
Sept. 29 2014 7:01 PM We May Never Know If Larry Ellison Flew a Fighter Jet Under the Golden Gate Bridge
  Life
Dear Prudence
Sept. 30 2014 6:00 AM Drive-By Bounty Prudie advises a woman whose boyfriend demands she flash truckers on the highway.
  Double X
Doublex
Sept. 29 2014 11:43 PM Lena Dunham, the Book More shtick than honesty in Not That Kind of Girl.
  Slate Plus
Slate Fare
Sept. 29 2014 8:45 AM Slate Isn’t Too Liberal, but … What readers said about the magazine’s bias and balance.
  Arts
Brow Beat
Sept. 29 2014 9:06 PM Paul Thomas Anderson’s Inherent Vice Looks Like a Comic Masterpiece
  Technology
Future Tense
Sept. 29 2014 11:56 PM Innovation Starvation, the Next Generation Humankind has lots of great ideas for the future. We need people to carry them out.
  Health & Science
Medical Examiner
Sept. 29 2014 11:32 PM The Daydream Disorder Is sluggish cognitive tempo a disease or disease mongering?
  Sports
Sports Nut
Sept. 28 2014 8:30 PM NFL Players Die Young. Or Maybe They Live Long Lives. Why it’s so hard to pin down the effects of football on players’ lives.